Capillary Technologies India Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and the National Stock Exchange. The filing, dated August 01, 2026, was made pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report provides stakeholders with a comprehensive overview of the company’s standalone performance across environmental, social, and governance dimensions, reinforcing its commitment to transparent reporting under the SEBI framework.

The disclosure covers the company’s operations as an IT consulting and computer programming entity, which accounted for 100% of its turnover in FY26. Capillary Technologies reported a paid-up capital of ₹158.82 mn and a net worth of ₹8,232.04 mn. The company operates through four offices in India and twelve international offices, serving customers in 49 countries. Exports contributed 93.0% of the total turnover, highlighting the firm’s global reach in providing AI-powered customer loyalty and engagement platforms.

Workforce and Human Capital

As of March 31, 2026, Capillary Technologies employed a total of 841 individuals, categorized entirely as employees with no workers. The workforce comprised 689 permanent employees and 152 non-permanent employees, including contractors. Women constituted 26.27% of the total workforce, with 221 female employees out of 841 total staff. On the Board of Directors, which consists of six members, one woman director represents 16.67% of the board. Among Key Managerial Personnel (KMP), one woman holds 33.33% of the positions.

The company reported a turnover rate of 15% for permanent employees in FY26, down from 16% in FY25 and 18% in FY24. For permanent workers, the turnover rate was 17% in FY26, compared to 14% in FY25 and 18% in FY24. Capillary Technologies maintains 100% coverage for health and accident insurance for all permanent and non-permanent employees. Additionally, 100% of female permanent employees received maternity benefits, while 100% of male permanent employees received paternity benefits.

Environmental Disclosures

In its environmental disclosures, Capillary Technologies reported total energy consumption from non-renewable sources at 108,222 units in FY26, a significant increase from 14,952 units in FY25. These figures were provided by the owner of the premises and are approximate in nature. The company noted that it does not have operational control over sewage treatment plants as its offices are multi-tenant facilities, and thus has not implemented a Zero Liquid Discharge mechanism. Total water consumption was recorded at 19,20,000 litres in FY26, up from 13,20,000 litres in FY25. There were no instances of water discharge to surface or groundwater, and no waste was generated or disposed of by the entity during the reporting period.

Governance and Stakeholder Engagement

The company’s Corporate Social Responsibility Committee oversees the implementation of business responsibility policies. The committee is chaired by Mr. Peeyush Ranjan, Independent Director, and includes Mr. Anant Choubey, Whole Time Director, CFO and COO, and Mr. Venkat Ramana Tadanki, Independent Director. Capillary Technologies resolved all 152 shareholder complaints received during FY26, with zero pending at the end of the year. No complaints were received from communities, investors other than shareholders, employees, customers, or value chain partners.

The company confirmed that CSR provisions under Section 135 of the Companies Act, 2013, are not applicable due to continuous losses in previous financial years. Capillary Technologies also reported no instances of data breaches, sexual harassment, discrimination, child labour, or forced labour. All employees underwent training on human rights issues, with 100% coverage achieved for both permanent and non-permanent staff.

capillary technologies reported a consolidated net profit of ₹523.88 million for the financial year ended March 31, 2026, a substantial increase from ₹132.80 million in the previous year. The company’s consolidated revenue from operations rose 23% to ₹7,345.99 million, up from ₹5,982.59 million in FY25. This growth was driven by strong organic performance, with new annual contract value (ACV) closing at ₹1,214.00 million, reflecting a 35% growth over FY25 excluding one large healthcare client. The company also completed its Initial Public Offering (IPO) during the year, raising ₹8,775.01 million, which bolstered its cash position to approximately ₹4,830.00 million as of March 31, 2026.

The financial results were filed pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiok & Co LLP served as the statutory auditor, issuing an unmodified opinion on both standalone and consolidated financial statements. The Board of Directors did not propose any dividend for FY26. The company’s standalone revenue increased to ₹2,118.90 million from ₹1,740.91 million, while standalone net profit decreased slightly to ₹28.90 million from ₹35.06 million, primarily due to higher employee benefit expenses and depreciation charges associated with recent acquisitions.

Financial Performance Highlights

The company demonstrated strong operating leverage, with adjusted EBITDA growing 43% year-on-year to ₹1,069.00 million. Adjusted EBITDA margins expanded to 14.6% from 12.5% in the prior year. The growth strategy focused on three engines: winning new customers, expanding within existing accounts, and strategic acquisitions. Net revenue retention stood at 114% organically, indicating healthy expansion within the existing customer base. Customer acquisition cost (CAC) as a percentage of ACV improved to 16.9% from 17.9% in FY25.

Strategic Acquisitions and Growth

Capillary Technologies continued its acquisition-led growth strategy, completing five acquisitions since 2021. During FY26, the company acquired Kognitiv Solutions Inc., strengthening its presence in North America and adding enterprise-grade loyalty SaaS capabilities. This acquisition contributed to the increase in goodwill to ₹3,095.76 million and other intangible assets to ₹1,385.57 million on the consolidated balance sheet. The company also entered the Latin American market through its first customer win in the region. Management highlighted that acquired businesses have historically turned around from loss-making to generating 35-40% contribution margins within three years of integration.

What the Numbers Show

A key observation from the financial data is the divergence between standalone and consolidated profitability. While consolidated net profit surged nearly threefold, standalone net profit declined by 18%. This discrepancy is largely attributable to the impact of acquisitions, which increased depreciation and amortization expenses significantly. The consolidated EBITDA margin expansion to 14.6% contrasts with the standalone focus on cost discipline, where indirect costs grew only 14% against 23% revenue growth. This suggests that while the core Indian entity maintains operational efficiency, the group-level profitability is currently being shaped by the integration costs and amortization of recent acquisitions like Kognitiv. The strong cash position of ₹4,830.00 million provides ample liquidity for future integrations and potential further strategic buys.